Skip to main content

tv   The Kudlow Report  CNBC  May 23, 2012 7:00pm-8:00pm EDT

7:00 pm
seconds away on "the kudlow report," the euro down nearly 2 cents. oil down to $90. are these signs of an economic slowdown? plus shouldn't president obama be worried about a domestic economic slowdown thanks to washington inaction? and democratic voters, are they protesting the voters? ask uncommitted in the primaries. they win big. i'm michelle caruso-cabrera in for larry. "the kudlow report" is moments away. >> hewlett packard good. it's all europe. we're not going to chang until they fix the problem. i'm jim cramer and i will see you tomorrow! hey, michelle, what are you looking at? >> it is all about the euro, jimmy, you are right, an unraveling euro and europe. investors worried about an economic slowdown. why doesn't the president and
7:01 pm
washington see this? good evening, i'm michelle caruso-cabrera in for larry kudlow as he takes a few days off. this is "the kudlow report." radio talk show host lars larsson joins me as my special get tonight. the president is once against at another fund-raiser saying he has a new feeling about america by doubling down and attacking mitt romney, big business and private equity. this as team obama unveils two ads touting his record on medicare and veterans. no mention of obamacare. but things can't be good for the president when he loses 42% of the vote in his own primary against uncommitted. happened in kentucky. 40% to a nobody in arkansas. we'll get all that tonight. also tonight, if ever there was a sign that the market thinks a global slowdown is heading this way, today was the day. the euro plummeted head first,
7:02 pm
nearly 2 cents in the last four hours, which in currency is a monster move down. the dow closed down only 6 points but only after climbing out of a hole and hp confirmed it's lay laiing off 27,000 of its workers. the obama campaign reupped attacks against mitt romney's business record today, buying muff more air time for its ad attacking bain capital romney and the eventual shuddering of a cans stay steel mill. >> if you thought this whole dust up by private equity and its role in american society was a one or two-day story and not a central piece of this presidential campaign this year, well, you were wrong. just about an hour ago the president continuing his criticism of mitt romney, bain capital and by extension the private equity industry itself, this coming at a campaign event
7:03 pm
in denver. as i say, just over an hour ago. take a listen to the president. >> what governor romney doesn't seem to get is that a healthy economy doesn't just mean a few folks maximizing their profits through massive layoffs or busting unions. you don't make america stronger by shipping jobs and profits overseas. when you propose cutting your own taxes while raising them on 18 million working families, that's not a recipe for broad-based economic growth. >> now, in is a fight that continued throughout the day. earlier in the day governor romney was speaking before a small business group and he laid out his defense of private equity and of business. >> sadly president obama has decided to attack success. it's no wonder so many of his own supporters are calling him to stop this war on job creators. make no mistake, when i'm
7:04 pm
president, you won't wake up every day and wonder if the president is on your side. >> is the private equity industry itself noticing it is suddenly in the headlines here? yes, it is. in fact, representatives of the industry taking to tv today to defend the industry. take a listen to that as well. >> the cornerstone of what we do is growing companies. we can't make returns unless we grow our companies. that's just fundamental to what we do. >> so what's going on here, michelle? this is classic presidential election year strategy. you take a perceived strength of your opponent, in this case mitt romney's business career and his calling card to reform the american economy, and you question it, criticize it and try to wear it down as a strength. this if anything can be seen i think as the swift boating of bain capital and something the romney campaign will have to weather for a couple weeks more at least. >> thank you so much. so is president obama really
7:05 pm
waging a war on job creators as the romney camp claims? here now is cnbc contributor, former auto czar steve ratner, who wrote an op-ed in today's "new york times" and with us romney backer and owns a restaurant chain and also lars. let's take a listen to something else on our sister network msnbc last week. >> bain capital's responsibility was not to create 100,000 jobs or some other jobs, it was to make profits for investors, most pension funds and endowments. it did it very well, acting within the rules and i do think to pick out a example of somebody who lost their job unfortunately, this is part of capitalism, part of life and i don't think there's anything bain capital did they need to be embarrassed about. >> in the segment you called the
7:06 pm
ad unfair. in today's "new york times" you said mr. obama struck the right balance. which is it? i don't understand. >> what i said in that op-ed today was on monday when the president spoke in chicago after this uproar last week, he struck the right balance. so i think he's attempting to clarify the point in the following sense, he is not against private equity. i don't believe he is. if i thought so i wouldn't be sitting here now defending him. i believe that mitt romney put his hundred thousand job creation record on the table by claiming he it done that and made that a farrish u for the campaign to debate and i don't think there's a shred of support for his claim that he created 100,000 jobs. >> mr. ratner, what about staples? staples alone would account for 70,000 or 80,000 of those jobs. and the layoffs were to save the company and the jobs that were kept would not have existed if those companies continued to
7:07 pm
maintain those workforces they couldn't afford. that's why bain walked in there. >> let's take your staples point. he's counting that as 90,000 of his his 00,000 jobs. when the company went public a few years later, it had a couple thousand employees. when mitt romney left bain long after bain had exited staples, staples had 40,000 employees so why he would count 90,000 is beyond description. >> steve, in the end, though -- >> i can explain that. i mean, i can explain why he could count that. he would count that because what you do in private equity as one of the clips said earlier is you want to create value for your investors. as steve said, his article was actually very good on that point. the problem is what you do when you create value, you position companies to grow and there's absolutely no reason why governor romney when he was with bain positioning companies to glow, stabilizing companies,
7:08 pm
returning them to prosperity, why hein wouldn't take some credit for the fact in the future once stabilized they created jobs. the real point isn't whether it's 2,000, 5,000 or 200,000 jobs, it experience the governor got running bain capital and how you actually create jobs. he's got extensive example in that, probably more than anyone who has ever run for office. >> governor romney put his job creating record on the table and there is no evidence he created jobs at bain. >> steve, i get your point. let me ask you this, this whole line of ads, we have long talked about whether or not president obama is anti-business and doesn't this just feed into that idea that he doesn't like business, he doesn't understand business, he doesn't even like the concept of maximizing profits. he sounds like he thinks that's a bad thing.
7:09 pm
>> i don't believe that. i worked with president obama on the auto rescue. i watched him make those decisions. that was an operation that mitt romney criticized and said president obama was making a mistake. he wrote an op-ed in the detroit news a couple months ago saying the auto industry would have been better off if president obama had never intervened. >> he never really opposed the managed bankruptcy here, actually proposed that early on. he ho posed putting $80 million into the auto industry. >> he wrote an op-ed in the detroit news saying the industry would have been better off if president obama had never done anything. if president obama and had never done anything, those companies would have closed their doors, liquidated and laid off workers. >> we're sort of time. i got to ask you a question, mr. ratner. will we do you understand against president obama at hundreds or thousands of employees at the 800 dealerships
7:10 pm
that were put out business by government decree because they didn't force these companies to go through conventional bankruptcies but said the italians want to us fire all these dealers around america, tell their employees they get a pink slip. should we credit that to president obama? >> governor romney is saying president obama cost the auto industry 100,000 jobs. bureau of labor statistic facts say auto industry employment is up 50,000 jobs since president obama took office. that's a fact. he has created those 50,000 auto jobs plus another 2 million private sector jobs since the bottom of the recession in the spring of 2009. >> so your logic is that the fact that he involved himself in a business in a way that threw bankruptcy law under the bus means we give him credit for every gain the industry has? >> i feel like it's three-on-one here. >> it is. >> but i don't mind that. i was there for the auto rescue so i'm happy to argue this one with 20 of you if you'd like. the fact is if he had not done
7:11 pm
what he did in the autos, those companies would have closed their doors and liquidated. >> you just -- he just doesn't want to give it to them at the right price. there's always a price, steve. you guy just didn't want to do it. you wanted to have the government to allocate capital from the top down. >> you think we wanted the government involved in this? >> yes. you want the government involved in every business in america. it's clear, how can you deny it in. >> the point here would be what the president did with the steel company in missouri going to the fired employees and ignoring the 78% success rate that pain had, that this would be like if government romney went and found pontiac dealers whose grandfathers had dealerships -- i don't think governor would
7:12 pm
romney would do that because it wouldn't be the right thing to do. >> governor romney is claiming president obama caused the loss of -- that's just as bad as anything you might accuse president obama of. >> it's the auto industry who did that to themselves. you've ban great sport. >> i feel like a punching bag. >> i know exactly how it feels. >> thanks, steve. >> lars larson will be with me for the rest of the hour. coming up, the cbo says we're looking at another recession in 2013 unless congress gets its act together. so we continue to search for a glimmer of bipartisanship on capitol hill. next lars talks to distinguished senators mark warner and jerry moran, republican from kansas. and later, oil closes below $90 a barrel for the first time since october, gold is down, the dollar is up, the scent of
7:13 pm
deflation is getting stronger. "the kudlow report" is come being right back. mary? what are you doing here? it's megan. i'm getting new insurance. marjorie, you've had a policy with us for three years. it's been five years. five years. well, progressive gives megan discounts that you guys didn't. paperless, safe driver, and i get great service. meredith, what's shakin', bacon? they'll figure it out. getting you the discounts you deserve. now, that's progressive. call or click today. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back.
7:14 pm
they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. ♪ ♪ ♪ [ male announcer ] the tight-turning, space-saving, eco-friendly smart. escape your stuff. ♪
7:15 pm
welcome to the world leader in derivatives. welcome to superderivatives.
7:16 pm
. welcome back. with elections looming large, it seems congress is locked in partisanship. but could there be hope for bipartisan on capitol hill? a group of senators had some success with their startup jobs act last month and now they're back with startup 2.0. joining me are distinguished senators park warner, democrat from virginia and jerry moran, republican from kansas. thanks for joining me tonight. >> great to be with you. >> senator, why is this the most important thing we should be working on right now trying to figure out another way to bring people in from overseas to take jobs from america that some of us think ought to be going to kid from america to finish college. >> let's back up for a second and look at the fact that 80% of the new jobs that have been created come from startup jbs.
7:17 pm
account jobs act that we worked together, we got the startups access to capital. now we've got to make sure that not on these companies, but other tech companies, traditional enterprises have access to worldclass talent. i'd like nothing better than the fact that if america was producing enough graduate degree, not undergraduate, graduate degree, ph.ds in engineering, math, science, i'd love for that to be if they were american born individual doing that. the unfortunate circumstance is those jobs are going on wanting and when somebody graduates from the university of washington or virginia tech or kansas state with a ph.d in engineering, if they're not american born, the company will still hire them but they'll hire them back in china or india and all the ancillary jobs go with them. doesn't make sense. >> senator moran, you're the republican here. tell me this -- we have an unemployment rate among college graduates in america that's almost 50% right now and we're going to hand their jobs to foreign students?
7:18 pm
>> absolutely not. the goal here, i think the reality will be that we need those individuals who have ph.ds in engineering and science and computers to create jobs here to be employed here, to create an entrepreneurial environment in which we hire americans. 60% of the -- those who received advance degrees in scenes and mathematics foreigners. one out of every five u.s. students study science, math and engineering. we have a huge gap. we've got to do something in our own educational system. the reality is if these individuals take their degrees, their ph.d in computer science and take it outside the country, not only do we lose that one job but likelihood is those are the people who are going to be entrepreneurs, things that have made america great, they're going to create a new business someplace else and they're going to be hiring canadians or those from ireland. just name the country.
7:19 pm
>> senator warner, we're doing all of this and it's wonderful to have these feel good measures, though i don't feel good about giving these jobs away burp we also have a fiscal cliff coming at us, the expiration of unemployment benefits and expiration of the bush tax cuts and nothing's getting done on that right now. so we're spending time on this when the cliff that's coming at us is a far bigger problem. >> lars, first of all, you got to get your data down. a third of all the tech jobs, technical companies in my state and close to 30% across nation that have been created over the last 20 years, at least one of the founders was a first generation american. weep need to continue to grow that and that goes right into the fiscal cliff issues. we both care deeply about that. we have perhaps different ideas on the revenue mix from tax reform or spending cuts that need to be made. but the third leg of that stool
7:20 pm
is going to be not only cutting taxes or cutting spending and raising revenues but you got grow the economy. if we're talking about creating joshs this is one way to do it. >> that is not the kind of solution we need to keep us off this cliff that is coming at the eastbound of this ye-- end of t year. >> we need to get our budget into line to balance. that's the reason i got interested in trying to figure out how to grow the economy is because i looked at this administration and this congress and you saw the president's budget proposal, the failure of the gang of six, the failure of the select committee, everything you look at whale i've been a member of the senate, a little over a year, there's been those who have tried including senator warner, but we have done next to something to solve the financial
7:21 pm
problems. a way thatty can address our company's fiscal problems is to grow the economy, put people to work and that's what this legislation will do. >> i wish you'd write a bill that said we're happy to fund college education for young americans in the trades and the professions that america needs. if they're just going off to college and getting degrees that lead to a 50% unemployment rate among college granl watts, that's not doing the trick. hold back the money from the kids that are taking degrees that don't sell on the marketplace and give them to the kids who want to study scenes and engineering. michelle, back to you. >> thanks so much, lars. up next, the fears of the possibility of bank runs in greece throw grohhing. rattling markets crushing gold and oil. these deflationary signs.
7:22 pm
"the kudlow report" will be right back. in here, great food demands a great presentation.
7:23 pm
so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ and somebody asks me a question about the volt. what really blows them away is when i tell them i almost never go to the gas station, despite the fact that they see me driving to work every day. i fill the volt up once every -- maybe once every couple of months. and that feels absolutely wonderful. i'm hardly using gas, but it's there when i need it. anybody that thinks that this car
7:24 pm
doesn't have solid performance, hasn't driven it. there's no other car like this on the road. ♪ hewlett packard beat on earnings and revenues but the numbers were down year ago. what sent the stock flying was hp's layoff announcement, 27,000 workers and the expected future savings. >> six days after the bungled facebook ipo, has the nasdaq had
7:25 pm
conversations with facebook or haven't they? we were told this their has been no discussion with facebook but other sources tell cnbc facebook is open to making a chang and facebook has somin gauged with nyse officials. facebook was up more than a buck today. that's more than 3%. the broad are market was down much of the day on concerns over europe. "the kudlow report" will be right back. it's gonna be a casual thing. ♪ ♪ ♪
7:26 pm
[ male announcer ] the tight-turning, space-saving, eco-friendly smart. escape your stuff. ♪ but not how we get there. because in this business, there are no straight lines. only the twists and turns of an unpredictable industry. so the eighty-thousand employees at delta... must anticipate the unexpected.
7:27 pm
and never let the rules overrule common sense. this is how we tame the unwieldiness of air travel, until it's not just lines you see... it's the world.
7:28 pm
welcome back to "the kudlow report." i'm michelle caruso-cabrera in for larry kudlow as he takes some days off. lars larson is our special guest tonight. good to you have. >> nice to be here. >> in this half hour, did piers morgan lie under oath? one of britain's most respected journalists says piers morgan did lie under oath about not hacking cell phones. this journalist says piers sh d showed him how to do it and even quoted conversations he listened
7:29 pm
to. and when president obama loses 42% of the vote in kentucky's democratic primary to uncommitted and 40% to a nobody in arkansas, you got to think members of his own party are feeling a new president may be in order. our political panel will hash it out. but first up, what a wednesday on wall street. the dow was down 191 points in session lows earlier this afternoon but the blue chip index did manage to rally oft lows finishing down just 6 points on the day. key commodities took a major blow. gold fell more than $28. oil settled below $90 a barrel for the first time since october. these aren't just signs of possible deflation, these are signs of a possible global slowdown coming. joining me is brian kelly, john killdrif and joe kelguard.
7:30 pm
the euro yesterday cost $1.27. tonight it cost less than $1.26, around $1.25. roughly 2 cents. 2 cents doesn't sound like a lot, guys but for the novice viewers who doesn't know about the marks, how big is a 2 cent move in 24 hours? >> it's massive. it's like a stock doing down 20% in a day. a 1% move in a currency, currencies my move 5% or 6% a year. >> what's the problem? >> eurozone implosion. they're trying to calculate like the former greek prime minister did last about how much it's going to cost them to pull out, $2 or $3 trillion. the now it's a battle to see who can call the lowest price point for this thing, is it $1.22, is
7:31 pm
$1.18, is it parity? >> a weaker euro isn't necessarily a bad thing. >> for the u.s., no. >> it's for europe. it's great for germany. if if it means they'll have a proper r.t. there, then it's a positive thing. i mo it's a sign of risk off. i wouldn't view it as an a catastrophe if the euro went to 1.15. >> we're disappointed that economic growth will be 2% for the rest of the year, but at least the zero that euro is going to have. >> i think it's going to be negative. it's going to be be awful and the southern part of europe. >> this dollar rally is going to hurt all the other asset classes, hurt the american equity positions and it's going to hurt oil, thank goodness. >> it's hurting oil. so the viewer watching may think, okay, my gas prices are going to be lower. is that a good thing? that's a good thing. >> the good news is gas prices
7:32 pm
will be lower, the bad thing is because of -- it's not because we're flush with gasoline. a stronger dollar -- what's happening is people are sending money to the u.s. if you get a housing recovery, it's positive for the u.s. and lower gas prices are fantastic. >> that's exactly right. the best thing we can do is get a sustainable floor under our asset prices. >> the facebook ipo. you talk a lot about technology. did they just have bad luck with the timing this week? facebook had not gone public in the week that europe appeared to be falling is part, would it be better? >> facebook in the secondary markets and there's a very active secondary market.
7:33 pm
has been dead flat for a year. >> there was a place where could you have traded facebook for the last year. >> and the insiders did, the venture capitalist, private equity people. >> if you were an employees and you wanted to sell your shares earlier, we may not have know. he was disdainful of the ipo pros peps he missed two two meetings in boston, he was late for his new york meeting identifying out in the bathroom. >> down think he care sfs. >> he cares about as much as president obama does to blue collar workers. he needs they but he's disdainful of them. he wanted to be a private company but his hand was forced because of this secondary market. >> so he doesn't give a darn.
7:34 pm
>> he doesn't give a darn. >> on the ipo you saw facebook start to get down to 38 and the market started to take a dive. >> they went public on friday last week, right? i've been talking about it nonstop. >> there were so many red flags around. there was so much institutional selling that went into that that anybody who has worked on wall street or experiences around the markets. you knew they were jamming as much stock as they could and people put an inhave i case -- you know what raes grael though, michelle, what's really great is the whole social needia space led by face -- it will have no impact on the broader technology stocks in general because stocks like cisco and intel. they're cheap. >> i see you nodding your head
7:35 pm
over nothing. >> what would you rather buy? would you rather buy for the next two years a german wbund, a two-year or would you rather buy app 2 -- >> the markets needed it, though. it it was a setback in that we had so much other bad news. the market could have been buoyed by a good facebook ipo. it's a personal. >> in the eurozone crisis policy makers are losing control. the europeans on the ground, not the policy makers, are in charge. we've seen it at the ballot box in france and greece, social unrest now for two years at least and now in the financial system.
7:36 pm
my next guest says forget about the greek elections. the greeks are going to decide when it comes to their banks. ben, good to see you. i hear so many people say being we have to wait for the outcome of the greek elections. i don't think we have to wait that long, right? what could happen before then that ultimately decides whether or not grease grooes stays in the euro or not in. >> many are focused on the june 17th elections where the radical left wing party is expected to do well. the problem is greek voters are voting with their bank deposits. deposits have been flooding out of the country into germany. if the capital flight accelerates, it will force the hand of the caretaker greet government. they may be ablojed to introduce the drachma just to keep the banks system afloat. >> if, good forbid, we were to have a bank run in the united states, we know what happens.
7:37 pm
the fdic comes in, they take over the back. they back all the deposits. in order to say bank. greece doesn't really have that option rn right, because of the structure of the ear rao. >> did have any capital. the bank of greece still does exist and they've been allowed by the icbes to it's beenest maded they printed about 100 billion euros worth but the ecb looks like they spent so let's give that as a take away to our views.
7:38 pm
to see the outcome of the greek elections but the bottom line is we have to see whether or not the grebes are committed to keeping their money in the banks. >> that's the key. if they are committed to keeping their money in the bank, they probably won't vote for the radical parties in the june. >> moves on to spain, to it little, portugal, island. we'll forget about greece very quickly. >> and the poor greek people are going to suffer a lot. ben, thank you so much. >> thank you, michelle. >> coming up a blockbuster scandals involved piers morgue aerngs paul mccartney's ex-wife and somebody over there is still in a growth.
7:39 pm
what are obama's chances for reelection? "the kudlow report" will be right back.
7:40 pm
ck. (female announcer) most life insurance companies look at you and just see a policy. at aviva, we do things differently. we're bringing humanity back to life insurance. that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic.
7:41 pm
see the difference at
7:42 pm
welcome back, i'm lars larson, in for a vacations larry kudlow. this time it's a shocker, one of the most respected british journalists, jerry packsman testified today it was cnn's piers morgan, a form are news the world editor, who worked for murdoch who taught him how to hack cell phones. piers morgan testified under oath he knew nothing about hacking. somebody here is lying under oath. a fantastic case of he said/he said. so first off, sarah, welcome to the program. who's telling the truth? >> well, if you're one of the -- if you're the justices listening
7:43 pm
to this inquiry and who has been listening to it for months and months and months when piers morgan was in, you could see the chief lawyer and justice levinson was asking the question, they were visibly irritated with piers morgue and. piers morgan had talked about a little trick that he knew to listen to people's voice mails but he then joked about how it was something he had repeated about the dark arts in the uk. i think people who were listening to this think that piers morgan is not telling the truth. >> when you read the testimony, the other journalist is very specific, he starts mimicking a conversation he appears to have heard involving the third person they're at lunch with together and he actually explains how he did it. if you don't have a password on your phone, a lot of people can know it's 0, 0, 0, 0, you try it and, bang, you can listen to
7:44 pm
messag messages. >> exactly. jeremy was specific. he said this person was sitting here, he described the entire scene in the entire lunch and you're exactly right. he went through saying this was the default setting and he said piers morgan said to him at the time back in 2002, if you don't have a code to protect your voice mail you're a fool. >> he's trapped. if he has testified and then contradicts his testimony, does he go to prison for perjury? >> he hasn't been proven to have lied yet. >> not yet. >> not yet. so what will happen is inevitably he'll be criticized in the report that comes out and he'll able to defend himself. he doesn't get immediately thrown into jail but there are serious consequences to lying under oath. that's why they give you an oath before you give your testimony so that you don't do it. >> what do you make of piers morgan's response via twitter
7:45 pm
where he said jeremy pacsman was an ungrateful little wretch and he wouldn't take him to lunch again. >> it's not a denial, is it? it makes you wonder about what's going on here in the states. people wonder, this is a british problem, people were hacking phones. it makes you here wonder, what have we imported. piers morgan is now a host on cnn. >> he doesn't actually directly deny it. he makes comments about how it doesn't make any sense. various things that sound to me like a per vare kateor. >> he has said things like i have no reason to believe it was going on, i don't have any recollection that it was going on. he doesn't ever say it never happened, my journalists were
7:46 pm
never responsible for it. so, yes, it does leave this -- what this scandal will teach you if you care to be paying attention to it at this point is that people can lie in a lot of different ways without officially lying because there's been a lot of that going on. >> especially a good wordsmith. >> sara, thank you so much. and read her book, it's great. >> coming up, the obama campaign is out with no one but two ads today. where's the mention of economic debt? [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future.
7:47 pm
♪ wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac
7:48 pm
♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer.forbusi. [ yawning sound ]
7:49 pm
welcome back to "the kudlow report." the obama campaign is out with two brand spanking new ads today. the good news, there's not a single anti-business, private equity attack in there. the bad news, neither spot addresses the government's dire fiscal footing, which has only grown worse under this president's watch. so with the u.s. headed for a fiscal cliff, is obama and his reelection bid at risk of falling off the edge of the cliff with it? here now is our panel with our own michelle caruso-cabrera. a pleasure to be working with you tonight.
7:50 pm
>> good to have you. let's start with john. what in the world is going that the president does not understand what's going on in america right now? americans care about jobs and the congress doesn't seem to understand it's up against a real problem when unemployment benefits run out and when the bush tax cuts run out at the end of the year. >> the cbo put out that report and they have to assume current law stays in place. but we all know current law will not stay in place. what we don't know is how is it going to change. let's make a broader and more important point and that is this country is heading off a fiscal cliff. we are $15 trillion in debt, we've added $5 trillion in debt just during the obama administration, we're racking up another trillion dollars plus in debt every year. we are going off a cliff. and the administration has no plan as to how to deal with it. >> and it seems you could beggip
7:51 pm
a lot of republican support. this is the same congress when we were attacked on 9/ 11 that congress and in three weeks on a lot of measures that would normally take years to get passed. steve, is there a reason we can't get the congress to act quickly, understanding we're just over six months away from real fiscal disaster? >> i'll be honest, i think a strong case can be made that it's a good thing knock is going to happen now. i think it's positive. >> how? >> you have the potential after congress for a lame duck congress it need be to do temporary changes into the next year. the election can be a referendum on to fundamentally -- >> isn't it uncertainty that's been screwing up the economy a big part of what screwed up the economy during the obama administration? nobody know what isses come
7:52 pm
being next, no has any way as a business or individual to make any plans for the future, you don't know what your health care or taxes will cost and you're telling me it's a great idea to run right up up to the edge of the cliff and we'll pull everybody back a few months into the next administration? >> you have one part right noush the opposition party in congress that part of it just has a very different vision about what the basic priorities of government should be right now, how the deficit ought to be attacked and there's a basic resistance to any sort of compromise. i think saw that last summer. i think it's good for the parties to make their kair to the country now and let the people decide how they want these issues addressed. they're very different visions. >> john, it's a provocative point. he's saying this is one of the most crucial elections where we as a nation want to decide what direction are we going? are we going to be more like
7:53 pm
europe or go back to the history of the united states and go back to that direction. wouldn't it be great to have that decision made and whoever is in charge lay out that plan. >> for once i agree with steve. i think that's exactly what needs to happen. we've tried obama's way, we cried trooid the democrats aae way, we tried massive stimulus and debt. it doesn't work. we got a lousy economy and $15 trillion in debts death. the democrat way has been tried. it's time for a different approach, it's time for spending restraint. it's time for a rational tax system and grow pro-growth policies. >> you're making the assumption that romney wins and that's the assumption you make. >> i am. i think romney will win and i don't expect it to be particularly close. >> i understand the idea of going to some kind of litmus
7:54 pm
test. no, we will have locked in the decision that america's going to have and between now and then all we need is one big disaster, one terrorist attack that ends up being successful and the whole country falls apart because we've already run our self to the edge. we're functionally bankrupt right now. >> i'll give you an example of why it a good thing. the bush tax cuts are due to expire. the president and democrats say they do not want the bush tax cuts extended for the wealthiest american. that is a significant part of their plans to deal with the deficit over the next two years. you're talking about the debt we have, the deficit problem we have and this is a stumbling block. the democrats are saying one component needs to ask the wealthiest americans to pay more. the republicans are saying no. >> theetiest people are already paying more than their share.
7:55 pm
but we're not going to run up a lot more debt -- we're already $15 trillion in debt. weep need a referendum on the failed obama policies that have dug this deep hope year in. >> do we need a referendum to have everybody admit this is a failure? >> i want a mandate, absolutely. i want a clear mandate where we say this is what we want. a reaganesque moment where we decide we don't want to be that european welfare state that has bankrupted -- that we're watching unfold to disastrous consequences and horrendous social costs across the pond. i think this is our moment to say we don't want to be that. >> and in the meantime we let the president and congress take a long vacation to run for reelection because we don't expect them to do their jobs. >> they don't do any work anyway. >> barack obama has done the
7:56 pm
damage he could do. he can't run up a lot more debt beyond what's already in the books between now and november. >> i'm sorry, listening to this whole conversation, you would never know what barack obama unharted from his republican predecessor. >> oh, my goodness, it bush's fault. >> let's talk about two wars, the medicare prescription program that wasn't paid for and what effect -- >> yeah, the people downlike that and they got even more under president obama. we got double that under president obama. >> it causes the work -- >> no president -- >> steve, steve, steve -- >> the president is not going to reverse itself right away. >> i'm so sorry, we got to cut this off. we've got some news we've got to get to. it was a great discussion. thanks so much for joining us. we are monitoring breaking news coming into cnbc. european leaders are speaking in brussels right now. the market is responding
7:57 pm
negatively the euro and crude oil are both dropping fas within the past 15 minutes. weefr going to monitor this throughout the night. tomorrow on cnbc beginning at 6:00 a.m. with "squawk box." can you continue in at 5:00 a.m. to watch "worldwide exchange." it's been great to have you as our audience. and lars, thank you. >> i've enjoyed being here. >> you a very good night. (female announcer) most life insurance companies look at you and just see a policy. at aviva, we do things differently. we're bringing humanity back to life insurance.
7:58 pm
that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic. see the difference at in your fight against bugs. ortho home defense max. with a new continuous spray wand. and a fast acting formula. so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max. so you can kill bugs inside, and keep bugs out. guaranteed. i've been crisscrossing the gulf i can tell you, down here,. people measure commitment by what's getting done. i'm mike utsler, and it's my job to make sure we keep making progress in the gulf.
7:59 pm
the twenty billion dollars bp committed has helped fund economic and environmental recovery. another fourteen billion dollars has been spent on response and cleanup. long-term, bp's made a five hundred million dollar commitment to the gulf of mexico research initiative... to support ten years of independent scientific research on the environment. results will continue to be shared with the public. and we're making sure people know that the gulf is open for business - the beaches are beautiful, the seafood is delicious. last year, many areas even reported record tourism seasons. the progress continues, but that doesn't mean our job is done. bp's still here, and we're still committed to seeing this through. ♪ ♪ ♪


info Stream Only

Uploaded by TV Archive on